BCK MCQ 1

‘’The wealth of Nation” Considered as the first modern work of Economics was written by :

• Marx

• Adam-Smith

• Lipsey

• Allen

Business Economics is:

• Normative Science

• Interdisciplinary

• Pragmatic in approach

• All of the above

The Central Economic Problem is:

• What to produce?

• What provision (if any) are to be made for economic growth?

• How to produce?

• All of the above

The ‘communist Manifesto’ was published in:

• 1848

• 1905

• 1952

• None of the above

Which of the following is not within the scope of Business Economics??

• Risk analysis

• Accounting Standards

• Capital Budgeting

• All of the above

The allocation of resources in a free-market economy is determined by:

• Level of profits of firms

• Consumer preferences

• Central planning authority

• None of these

Which of the following exhibit direct price demand relationship:

• Substitute goods

• Complementary goods

• Giffen goods

• None of these

Which of the following is a variable case for a firm?

• Interest on loan

• Monthly rent

• Insurance premium

• Wages to employees

A firm’s average fixed cost (AFC) is Rs. 20 at Six Units of output. What will be AFC at four Units of Output?

• Rs. 20

• Rs. 30

• Rs. 40

• Rs. 50

X,Y and Z are confused with the formula for defining TC

(a) X Says : TC = TVC +TFC

(b) Y Says: TC = AC X output

(c) Z Says: TC = ZMC + TFC

Identify who amongst them is correct

• X

• Y

• Z

• All of them